Carrizo 1Q15: Drilled 2 Test Wells in OH Utica, Good Results
A bit of a surprise for MDN with the release of Carrizo Oil & Gas’s first quarter 2015 update today. In January Carrizo said they would not be drilling any new wells in the Utica/Marcellus in 2015 (see Carrizo Cuts Budget 35%, No Drilling Planned in Utica/Marcellus in 2015). While the company held true to its word on the Marcellus and did not drill any new wells, they did drill two new Utica wells in 1Q15. The two wells were drilled in northeast Guernsey County, OH and are being used as tests to determine the production capability in that area. Early results, according to Carrizo, are quite good (an average 200 barrels per day of oil/condensate). They do say, however, that because of low prices, they have no plans to drill any more Utica wells for the balance of this year beyond these two test wells in Guernsey…
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Something troubling for MDN. The Constitution Pipeline, a 125-mile pipeline that will stretch from the gas fields of Susquehanna County, PA into New York–to Schoharie County, has been approved by the Federal Energy Regulatory Commission (FERC), a multi-year process. The only thing keeping Williams from starting up the backhoes and beginning to lay pipeline is New York State–specifically the state’s Dept. of Environmental Conservation (DEC). The DEC must grant what’s called a 401 Water Quality Certificate that allows the Constitution to lay pipe through and under swamps, creeks and other bodies of water. The DEC ran a series of public hearings on it, one of which MDN editor Jim Willis attended in January (see 
Book ’em, Danno!” Remember that phrase from the original Hawaii 5-0 television series that aired from 1968-1980? Jack Lord was great as Steve McGarrett. That’s the image we immediately had when reading a story about the U.S. Environmental Protection Agency executing a search warrant at a Vienna Township, OH brine injection well. The EPA was looking for evidence in an “environmental crime.” We have to confess we find the whole concept of “environmental crime” somewhat silly. You have violations of regulations–sometimes egregious and yes, criminal. But we detect a shift by anti-drillers to move the debate into turning what are sometimes pure accidents, other times neglect, but rarely intentional activities into “crimes.” The law-breaking Attorney General of Pennsylvania, Kathleen Kane, is famous for this. After taking office she targeted XTO Energy for what she says is a “crime” that happened several years before she took office. The “crime”? An accidental spill of wastewater. That’s how these people operate. Salem witch hunt kind of attitude–they’re frackers, burn them at the stake! Back to Vienna. The EPA in search of a crime worked with the OH Attorney General’s office and the OH Bureau of Criminal Investigation to raid the injection well facility to find “evidence” of a crime after a recent spill at the facility…
GreenHunter Resources continues to aggressively push back against the U.S. Coast Guard (USCG) with respect to barging brine from shale wells. Yesterday was the latest flare-up in the war of words between GreenHunter and the USCG. Once again GreenHunter COO Kirk Trosclair said the way they read the rules, they have permission under existing 1987 rules to barge it. And once again the USCG said no you don’t–not until we say you do. The latest twist is that the USCG says that brine might have high levels of radioactivity and so now the Dept. of Homeland Security is reviewing the whole matter. Which is a neat way of corrupting the issue–just claim there’s a national security issue and that shuts it all down. Still, GreenHunter is committed to begin barge shipments this year. However, we also learned yesterday that those shipments will not originate at GreenHunter’s proposed facility near Wheeling, WV…
We hate to rain on Belmont County, OH’s parade, but we have to point out their celebration over the announcement about a potential ethane cracker plant announced on Wednesday may be a bit premature (see 
As we told you Tuesday, Ohio is now squarely in the ethane cracker race (see 
Last October MDN told you about the rumor that a pair of companies from Thailand and Japan were partnering with the aim of building an ethane cracker plant in the Marcellus/Utica region (see